From Data Gaps to Clarity: Mastering Scope 3 Emissions in the Chemical Industry

A recap of our recent webinar on supply chain transparency and decarbonization strategies

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For chemical companies navigating their decarbonization journey, one statistic stands out: 76% of emissions come from Scope 3, aka the supply chain. Yet this largest source of emissions remains the hardest to track, measure, and ultimately reduce.

In our recent webinar, Pierre Cassedanne, Project Director at CO2 AI, and Arne Kaetelhoen, Managing Director at Carbon Minds, explored how companies can transform scattered data and coverage gaps into actionable Scope 3 strategies. Here are the key takeaways.

The Supply Chain Emissions Challenge

When we think about corporate emissions, smokestacks and energy bills typically come to mind. But for the average chemical company, these direct (Scope 1) and energy-related (Scope 2) emissions represent only about 24% of total emissions.

The remaining three-quarters hide in complex, global supply chains that span multiple countries, production processes, and tiers of suppliers. As Arne explained: "These supply chains stretch over many different countries, with many different production steps involved, so it's very difficult to track, but at the same time, these Scope 3 emissions are typically the largest lever for climate impact reduction."

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Where to Focus Your Efforts

Not all Scope 3 categories are created equal. For chemical companies, Category 3.1 (purchased goods and services) accounts for nearly 60% of Scope 3 emissions. This single category represents almost half of a company's total carbon footprint.

The implication is clear: mastering Category 3.1 isn't just a reporting requirement, it's the foundation of any meaningful decarbonization strategy.

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The Four-Stage Journey to Scope 3 Clarity

Pierre outlined the data journey CO2 AI has observed across dozens of companies:

1. Granular Hotspotting

Before engaging suppliers, you need to understand where your emissions actually are. This requires:

• Precise, activity-based emission factors
• Regional and process-specific data
• Product-level visibility into your supply chain

"It's all about prioritization and efficiency," Pierre emphasized. "You're not going to engage all of your suppliers in a similar way."

2. Supplier Assessment

Once hotspots are identified, assess supplier maturity:

• Do they have science-based targets?
• Have they started their PCF (Product Carbon Footprint) journey?
• What's their current capability level?

This intelligence allows you to differentiate your engagement strategy, focusing deep collaboration efforts where they'll have the greatest impact.

3. Strategic Engagement

Armed with data and supplier insights, meaningful collaboration can begin:

• Share estimated footprints as conversation starters
• Collect primary data from strategic suppliers
• Co-develop decarbonization projects
• Support less mature suppliers with calculation tools

4. Progress Tracking & Reporting

Close the loop by translating supplier engagement into verified progress:

• Integrate primary data into your footprint
• Track year-over-year improvements
• Report verified emission reductions
• Maintain an audit trail for compliance

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Why Data Granularity Matters

Arne illustrated the importance of granular data with a compelling example: polypropylene.

"People often ask, 'What's the carbon footprint of propylene?' implying there's one single value," he explained. "But in reality, the chemical will be produced in one of many countries, and emissions can be completely different."

Comparing production in Kuwait versus China reveals a 3x difference in carbon footprint. Drilling down further into just Chinese production shows a 10x variation depending on production technology and supplier.

The takeaway? Using global averages makes precise tracking impossible. "If you only took the global average, it's very likely that you're several hundred percent wrong," Arne noted.

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The Carbon Minds Advantage

To enable this level of precision, Carbon Minds has built the world's largest lifecycle database for chemicals and plastics:

• 140,000+ datasets covering 1,500+ chemicals and plastics
• Region-specific data for 200+ production regions
• Technology and supplier-level granularity
• Full TÜV Rheinland certification
• Compliant with ISO standards, Together for Sustainability (TFS), and UEIL guidelines

This granularity isn't just about accuracy, it reveals reduction opportunities that averages obscure.

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Seeing It in Action: The CO2 AI Platform

Pierre demonstrated how CO2 AI brings this workflow to life:

Automated Data Ingestion: Upload procurement data and let AI match purchases to the most specific emission factors available, whether global averages or region-and-process-specific Carbon Minds data.

Intelligent Prioritization: Visualize top emission sources alongside supplier maturity scores to identify where engagement will have the greatest impact.

Integrated Supplier Collaboration: Engage suppliers directly through the platform, request primary data, and support their PCF calculations through CO2 AI's SPARC program (free supplier access).

End-to-End Traceability: Track from initial estimates through supplier engagement to primary data collection, maintaining PACT compliance throughout.

Roadmap Visibility: Monitor supplier commitments, track reduction levers, and forecast progress against your targets.

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Practical Advice: Where to Start

When asked "What's the first step to reduce Scope 3 emissions today?", both experts emphasized:

Get complete visibility first. Don't start supplier engagement with guesswork. Invest in quality secondary data to:

• Ensure you don't miss hotspots
• Identify the 30-100 purchases that likely drive 80% of your emissions
• Benchmark current suppliers against market alternatives

Focus ruthlessly. As Pierre noted: "Sometimes it's even 10 products that matter for 50% of emissions. Making sure you have them super clearly identified" is the key to efficient action.

Align on methodology. Before collecting hundreds of supplier PCFs, ensure everyone uses the same standards (like TFS). As Arne warned: "If you don't do it right, you do it twice."

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The Quality Over Quantity Principle

A recurring theme in the Q&A: quality trumps volume when it comes to supplier data.

"I would rather have fewer PCF, primary PCF from suppliers, but of good quality, and with deep investment with them to make sure that we have mutual understanding," Pierre advised. "I've seen so many companies lost with hundreds of PCFs of various quality, at the end of the day, not so much you can do with this data."

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Conclusion: Data as the Foundation

The path from Scope 3 uncertainty to actionable decarbonization isn't mysterious but it requires the right data foundation. By combining granular secondary data (like Carbon Minds) with intelligent platforms (like CO2 AI), chemical companies can:

• Move beyond compliance to strategic action
• Focus resources where they'll have the greatest impact
• Collaborate meaningfully with suppliers
• Track and verify real progress

As global pressure for supply chain transparency intensifies, the companies that master Scope 3 today will be the leaders of tomorrow's low-carbon economy.

Want to learn more? Request a demo to see how CO2 AI and Carbon Minds can accelerate your Scope 3 journey.

Missed this session? Follow CO2 AI and Carbon Minds on LinkedIn to stay informed about upcoming webinars and events.

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